TechFlow, July 23 — According to The Block, multiple ETF issuers submitted amended applications to the U.S. Securities and Exchange Commission (SEC) on Tuesday, seeking to enable in-kind creation and redemption mechanisms for their Bitcoin and Ethereum exchange-traded funds. 21Shares, Fidelity, Franklin Templeton, Galaxy, VanEck, and WisdomTree all filed related amendment proposals.
James Seyffart, ETF analyst at Bloomberg Intelligence, said this indicates a "positive shift" in the SEC's stance. SEC Commissioner Hester Peirce stated last month that in-kind redemptions for crypto ETFs are "coming soon" and currently going through the process.
Notably, the in-kind redemption mechanism applies only to "authorized participants" such as major Wall Street institutions and market makers, not retail investors. Analysts believe this change will place crypto ETFs on equal footing with other ETF products and could open the "floodgates" for approval of more crypto-related ETFs.
